Cathay Pacific 2008 Annual Report Download - page 58

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Notes to the Accounts
Cathay Pacific Airways Limited Annual Report 2008
1. Turnover
Turnover comprises revenue and surcharges from transportation services, airline catering, recoveries and other
services provided to third parties. Fuel surcharges, insurance surcharges and cargo security charges collected upon
sales of transportation services are treated as traffic turnover and a total amount of HK$9,936 million have been
reclassified in the 2007 comparatives.
2. Segment information
(a) Primary reporting by business segment
Airline business Non-airline business Unallocated Total
2008
HK$M
2007
HK$M
2008
HK$M
2007
HK$M
2008
HK$M
2007
HK$M
2008
HK$M
2007
HK$M
Revenue
Sales to external customers 85,405 73,881 1,173 1,477 86,578 75,358
Inter-segment sales 16 24 1,343 1,209 1,359 1,233
Segment revenue 85,421 73,905 2,516 2,686 87,937 76,591
Segment results (8,118) 7,471 189 268 (7,929) 7,739
Net finance charges (1,012) (803) –16 (1,012) (787)
(9,130) 6,668 189 284 (8,941) 6,952
Share of (losses)/profits
of associates (730) 1,057 (730) 1,057
(Loss)/profit before tax (9,671) 8,009
Taxation 1,360 (752) (23) (47) 1,337 (799)
(Loss)/profit for the year (8,334) 7,210
Assets and liabilities
Segment assets 103,663 105,869 1,303 1,727 104,966 107,596
Investment in associates 9,773 10,054 9,773 10,054
Total assets 103,663 105,869 1,303 1,727 9,773 10,054 114,739 117,650
Segment liabilities 76,058 66,513 236 410 76,294 66,923
Net assets 38,445 50,727
Other segment
information
Depreciation and
amortisation 5,040 4,681 155 163 ––5,195 4,844
Purchase of fixed and
intangible assets 8,509 9,722 719 79 ––9,228 9,801
The Group’s two reportable segments are classified according to the nature of the business. The airline business
segment comprises the Group’s passenger and cargo operations. The non-airline business segment includes
mainly catering, ground and aircraft ramp handling services.
The major revenue earning asset is the aircraft fleet which is jointly used by the passenger and cargo services.
Management considers that there is no suitable basis for allocating such assets and related operating costs
between the two segments. Accordingly, passenger and cargo services are not disclosed as separate business
segments.
Inter-segment sales are based on prices set on an arm’s length basis.
STATEMENT OF COMPREHENSIVE INCOME
56